On January 1,Year 1,Naples Purchased a Computer System That Cost

question 27

Essay

On January 1,Year 1,Naples purchased a computer system that cost $1,480,000.The estimated useful life of the computer is 3 years and salvage value is $40,000.Straight-line depreciation is to be used.On January 1,Year 2,Naples determined that the estimated useful life of the computer would be 4 years instead of 3 years.The estimated salvage value will only be $10,000.
Prepare the journal entry to record depreciation expense for Year 1.
Prepare the journal entry to record depreciation expense for Year 2.

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Definitions:

Marginal Revenue

The profit increase achieved by selling one additional unit of a product or service.

Marginal Cost

The incremental cost involved in producing an additional unit of a good or service.

Marginal Revenue

The financial gain a firm acquires from the sale of an extra unit of a product or service.

Surround Sound Systems

Audio systems designed to immerse the listener in a rich and directional sound experience by using multiple speakers placed around the environment.